Rates finally start to ease as jet fuel prices fall

Global air cargo rates have finally decreased following a series of increases since the start of the Middle East conflict, though they are still well up year on year.

According to the latest data from TAC Index, the overall Baltic Air Freight Index (BAI00) was lower by 4.9% in the week to 18 May compared with the prior week, though still up some 30.4% year on year.

Global airfreight rate rises had largely eased in the week to 11 May after the big increases of the previous two months.

The decrease in rates for the week to 18 May was prompted by an approximately 10% drop in jet fuel prices in early May, though prices are still up about 80% year on year, remarked TAC.

BAI spot rates decreased during the week out of Hong Kong, India and Korea. Overall rates from China were also lower week on week to the US – but still slightly higher to Europe.

The index of outbound routes from Hong Kong (BAI30) – reflecting the full spectrum of spot and forward contract rates being paid – was down 2.4% week on week, leaving it up 34.3% year on year.

Outbound Shanghai (BAI80) was also down 1.7% week on week, though still up 38.6% year on year.

However, rates from Southeast Asia out of Vietnam and Bangkok were higher again week on week both to Europe and the US, and still a long way up year on year.

Rates from hubs in East Asia like Seoul and Taiwan were lower to Europe, but more mixed to the US. Rates from India were lower week on week, but still way ahead year on year.

From Europe, rates eased lower week on week on transatlantic lanes to the US as well as on routes to China, India, Japan and the UAE – after huge increases to the Gulf ever since the Iran conflict began and capacity was heavily impacted – but also edged higher again to Australia, Mexico and South Africa.

The index of outbound routes from Frankfurt (BAI20) eased down 2.4% week on week to leave it up just 9.6% year on year.

Outbound London Heathrow (BAI40) gave back a much greater -13.8% week on week  – though this came after a series of strong gains in recent months to leave it still up some 40.5% year on year.

Out of the US, rates were a little higher overall week on week to Europe and to South America, but lower to China as well as to Korea.

The often volatile index of outbound routes from Chicago (BAI50) plummeted 24.6% week on week to leave it up only 4.7% year on year.

In comparison, rates from Mexico to Europe rebounded from the previous week’s fall to leave them well up again year on year.

Source https://www.aircargonews.net/data/2026/05/rates-finally-start-to-ease-as-jet-fuel-prices-fall/